UT (Tax & Chancery) UT-2024-000113 - [2025] UKUT 00165 (TCC)

The Appellant appeals the decision of the First-tier Tribunal (“FTT”) dated 13 June 2024 dismissing his appeal: [2024] UKFTT 00537 (TC) (“the Decision”). The appeal concerns the procedural requirements for HMRC to issue valid enquiry notices and closure notices in respect of share loss relief claimed by the Appellant to have been incurred in the year 2006-07 (“06-07”) but carried back and included on his self-assessment tax return for 2005-06 (“05-06”).

HMRC opened enquiries into: i) the Appellant’s claim included on his return for 05-06 as a standalone claim pursuant to Schedule 1A to the Taxes Management Act 1970 (“TMA”), and; ii) his tax return for 06-07 under s.9A TMA. Thereafter they issued closure notices in respect of each enquiry denying the relief claimed. It was common ground that if the Appellant was entitled to, and did, make his claim for share loss relief ‘in’ the 05-06 tax return, then neither of those enquiries could have extended to that claim because HMRC did not open an enquiry under s.9A into the Appellant’s 05-06 return. In those circumstances HMRC would not have lawfully denied the claim.